Karat IPO Presentation Deck

DEBT PRE-DEAL AND POST-DEAL ($ in millions) Cash and Cash Equivalents Long Term Debt Line of Credit Total Institutional Debt Consolidated . $0.4 65.4 33.2 $98.6 Pre-Deal Eliminations $0.0 0 0 $0.0 Global Wells $0.1 37.4 0 $37.4 Karat Packaging $0.3 Commentary We intend to use approximately $30 million of the net proceeds of this offering to discharge the following indebtedness: 28 33.2 $61.2 CONFIDENTIAL Post-Deal IPO Adjustments $38.0 (9.8) (20.0) ($29.8) Pro-Forma Karat Packaging Note: Figures presented as of December 31, 2020, Cash to balance sheet assumes $75 million offering, $29.8 million debt paydown and 7% gross spread and other IPO related fees. $38.3 Term debt with an original principal of $4,814,677, with an outstanding principal balance of approximately $2,322,000 as of December 31, 2020, with a fixed interest rate of 4.98% and a maturity date of March 2023; 18.2 13.2 $31.4 Term debt with an original principal of $9,476,000, with an outstanding principal balance of approximately $7,450,000 as of December 31, 2020, with a fixed interest rate of 5.75% and a maturity date of July 2024; and Payment of $20,000,000 on our existing line of credit with an interest rate of prime less 0.25%, subject to a minimum rate of 3.75%, with an outstanding balance of approximately $33,169,000 as of December 31, 2020 Karat 28

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